π¨ π½πππΌππππ: Leaked Screenshots Reveal Brazil's Innovative Subscription Management Solution within Upcoming April 2024 Open Banking VRP | 2023 #32
Weekly news up to Wednesday, 16th of August 2023
π NEWS HIGHLIGHT
By now, you're likely familiar with the concept of open banking. This idea enables banks and fintechs to exchange data and payment requests.
One intriguing feature is VRP (Variable Recurring Payments). While the Brazilian Open Banking agenda doesn't explicitly touch on VRP, the country's central bank intends to introduce it through another one-off it's open finance instruments: PIX, the local peer-to-peer payment solution akin to the US FedNow and India's UPI.
π° ARTICLE
Revolut says Latin America is a key region for its growth going forward. Revolut launched operations in Brazil, the largest country in Latin America, this past May.
Latin America has experienced dramatic Fintech growth as the region tends to be underbanked β or not banked at all. At the same time, established financial services have been slow to change with the times, creating a serious opportunity for innovative Fintechs to provide financial services.
π‘INSIGHTS
Nu added 4.6 million customers in Q2β23 and 18.4 million year-over-year (YoY), reaching a total of 83.7 million customers globally by June 30th, 2023. This represents a 28% growth YoY, which underscores Nu's position as one of the largest and fastest-growing digital financial services platforms worldwide and the fifth-largest financial institution in Latin America by number of customers.
π§ ANALYSIS
Investors flooded Latin Americaβs startups with cash. Now the herd is thinning with the strongest riding out the turmoil.
The numbers sound almost implausible. As Brazilian consumers fall behind on debts and rattle a slew of financial-technology startups in Latin Americaβs largest economy, one venture keeps notching ever higher.
NOW, ON TO THE SUMMARY OF LAST WEEK'SΒ NEWS
βοΈ REGIONAL HIGHLIGHTS
βοΈ Clara is moving its headquarters from Mexico to Brazil after obtaining a central bank license to operate as a payment institution.
βοΈ Fiado and Pomelo unveiled a new credit card aimed at improving financial experiences for Latino migrants in the US.
βοΈ dLocal is exploring a potential sale.
BRAZIL
Brazil's central bank has picked 16 proposals - from firms including Nubank, Microsoft, Visa and SETL - for the pilot phase of its Drex CBDC project.
Matera is bringing AI to instant payments after acquiring local outfit Cinnecta. The firm will now tap Cinnecta's AI capabilities to develop products and services tailored to financial institutions, credit card companies and consumers.
ARGENTINA
Prex partnered with Allaria to introduce a high-yield savings account in Argentina. The product allows customers to receive daily returns on their savings with an estimated 83% annual yield.
MEXICO
Capitaria has extended its operations to Mexico with clear targets set. This new venture aims to attract over 200 clients within its initial year in Mexico and handle transactions amounting to US$500 million.
Klar has secured a $100 million credit line from investment firm Victory Park Capital. This move aims to expand Klar's lending portfolio in a country where few residents have access to credit facilities.
EL SALVADOR
Cubo receives an investment of US$750K from the IDB to promote financial inclusion in Central America.
MOVERS & SHAKERS
dLocal taps former MercadoLibre CFO Pedro Arnt.
If you are a fintech startup and have over 100 questions send me an email, maybe I can answer a few.